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I am considering repiping my house to make my water more efficient. The initial cost of each alternative is given in the table below. After
I am considering repiping my house to make my water more efficient. The initial cost of each alternative is given in the table below. After year zero, the savings (with regards to less usage) as well as appreciation on the value of my house are given. If I have an investment account that makes a 20% return, which- if any is the preferred improvement to the house. Use present worth, future worth, annual equivalence as well as incremental analysis (IRR) to justify your answer. (Please write out all the equations you are using for the analysis, but calculations can be done with another technology). Year 0 1 2 3 4 5 6 PEX Pipe -600 222 250 262 270 270 220 Galvanized Copper Pipe Pipe -640 -715 -80 165 352 366 340 360 340 350 340 350 340 284
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